Letter from Lampson to D. Kaklamanos regarding Greece"s war debt to England.

Annexe No 1 FOREIGN OFFICE. August 12, 1926. My dear Minister, You asked me before you left this afternoon if I could let you have the gist of what I had said to you during our conversation regarding the necessity of reaching some agreement with His Majesty's Government respecting the Greek war debt before any application is made to the League of Nations for a supplementary refugee loan. As requested I repeat the substance of my remarks on that head. There can be no question, so far as we are concerned, of the issue of a further refugee loan until the question of the Greek war debt has been settled. It is now an established rule that the market will not give loans to foreign governments who have failed to settle their war debts. This rule was not in force when the first refugee loan was floated, but it is now. It is in the interests of Greece as well as in those of the creditor Powers that the war debt should be settled without further delay. In fact the time has come when the Greek Government would be well advised to put their financial affairs in order with a view to stabilising Greek currency. The Greek Government cannot hope to achieve a comprehensive programme of financial reform without including the settlement of their war debt. Monsieur D. GACLAMANOS.